It's kind of a catch-22 situation - drawing a balance between raising the standard of ability, and teaching ability with expanding the organization - IMHO.

I absolutely agree. Look at how many large and obviously organizational, money-making moves have been made within Aikido. Look how many yudansha ranks have come in spurts or organizational reasons. It's always tricky and I think it's a contributing reason to why some of the diehard purists don't want to share all they know within an organization.